On Monday, the US Dollar declined by 27 pips or 0.25% against the Japanese Yen during the early trading session. The currency pair was pressured lower by the 55– and 100– hour SMAs during yesterday's trading session.
Economic Calendar
At 12:30 GMT on Thursday, the US Preliminary GDP is set to be published. This event has caused USD/JPY moves from 6.3 to 10.4 pips.
Also on Thursday, the weekly US Unemployment Claims are set to be published at 12:30 GMT. Our analysts have been ignoring this event since February, as it did not have an impact on the USD. This week, another check of the data was done.
The USD/JPY has moved from 5.9 to 21.7 pips since April 22 due to the Unemployment Claims.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
At around 0700 GMT, the weekly support level at 108.53 provided support for the currency exchange rate and pushed it higher to the 109.00 level, where the 200-h simple moving average provided the resistance to the USD/JPY pair.During the surge, the rate broke the 55- and 100-h simple moving averages as well as the border of the descending channel pattern.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has clearly passed the support of the 55-day simple moving average. Moreover, the lower trend line of the channel up pattern has been passed.In addition, note the Fibonacci retracement levels. Namely, the 50.00% Fibonacci retracement at 108.57 and the 61.80% Fibo at 110.05. The 50.00% Fibonacci retracement could soon provide support.
Daily chart
On Tuesday, traders on the Swiss Foreign Exchange were 59% short on USD/JPY.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 52% to buy the pair.
On Monday, the pending orders were 54% to buy.